Atradius Collections has signed a cooperation agreement with Flevum-Loernermark in Nanjing, with the aim of jointly pursuing the collection of unpaid invoices of Chinese exporters to their foreign customers. According to Atradius, over 75% of Chinese exporters write off unpaid international invoices due to language barriers and poor administrative routines.
Atradius Collections is also hoping to help Chinese exporters increase cash flow and reduce bad debts. In China payment terms of 180 days or even a year are not uncommon. Atradius Collections will only pursue collection of unpaid Chinese invoices on export to foreign customers as only law firms are permitted to operate a domestic debt collections business in China.
Through this cooperation agreement, Atradius Collections expects a monthly collection inflow of approximately €1mn of unpaid debts from Chinese exporters.
The Atradius Group provides trade credit insurance, surety and collections services. It has total revenues of approximately €1.8bn and a 31% share of the global trade credit insurance market.
Last Updated August 07, 2008
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